EXHIBIT 10.3
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FIRST AMENDMENT TO CREDIT AGREEMENT
THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered
into as of March 2, 1998, by and between XXXXXXX MANUFACTURING CO., INC, a
California corporation ("Borrower"), and XXXXX FARGO BANK, NATIONAL
ASSOCIATION ("Bank").
RECITALS
WHEREAS, Borrower is currently indebted to Bank pursuant to the terms
and conditions of that certain Credit Agreement between Borrower and Bank
dated as of January 15, 1997, as amended from time to time ("Credit
Amendment").
WHEREAS, Bank and Borrower have agreed to certain changes in the terms
and conditions set forth in the Credit Agreement and have agreed to amend
the Credit Agreement to reflect said changes.
NOW, THEREFORE, for valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree that
the Credit Agreement shall be amended as follows:
1. Section 5.4 is hereby deleted in its entirety, and the following
substituted therefor:
"Section 5.4. GUARANTIES. Guarantee or become liable in any
way as surety, endorser (other than as endorser of negotiable
instruments for deposit or collection in the ordinary course of
business), accommodation endorser or otherwise for, nor pledge or
hypothecate any assets of Borrower as security for, any
liabilities or obligations of any other person or entity in an
aggregate amount at any time in excess of $4,000,000.00, except
any of the foregoing in favor of Bank."
2. Except as specifically provided herein, all terms and conditions
of the Credit Agreement remain in full force and effect, without waiver or
modification. All terms defined in the Credit Agreement shall have the
same meaning when used in this Amendment. This Amendment and the Credit
Agreement shall be read together, as one document.
3. Borrower hereby remakes all representations and warranties
contained in the Credit Agreement and reaffirms all covenants set forth
therein. Borrower further certifies that as of the date of this Amendment
there exists no Event of Default as defined in the Credit Agreement, nor
any condition, act or event which with the giving notice or the passage of
time or both would constitute any such event of Default.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the day and year first written above.
XXXXX FARGO BANK,
XXXXXXX MANUFACTURING CO., INC. NATIONAL ASSOCIATION
By: /s/Xxxxx Xxxxxx By: Xxxxx Xxxxxxxx
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Xxxxx Xxxxxx Xxxxx Xxxxxxxx
Vice-President
Title: CFO
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By: /s/Xxxxxx X Xxxxxxxxx
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Title: President
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